Dropshipping Payment Processors (Shopify)

MagmaDeSade

MagmaDeSade

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Im currently living in a Third World Country in the Balkans where there is 0 Payment Processors for Dropshipping

In a desperate attempt to get a Payment Processors i registered a UK LTD and used that to Register into Stripe/Shopify Payments

Got banned from both of them

Stripe = Doesnt support Dropshipping in General and didnt like that i was using a UK LTD from outside the UK

Shopify Payments = Just straight up didnt like that i used a UK LTD and wasnt living in UK Soil

Skrill = Applied 1 week ago still have gotten no reply


Is there any Payment Proccessor that Supports Dropshipping and is avaliable to use with a UK LTD?
 
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Switch to cash on delivery - quite popular in Eastern Europe and works wonders. No ban no pain. The only thing to set is correct tracking - can be done.
 
N1ckG2 said:
Switch to cash on delivery - quite popular in Eastern Europe and works wonders. No ban no pain. The only thing to set is correct tracking - can be done.
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Lol, i am dropshipping in the US just from Eastern Europe
 
You're never going to achieve much with simply a UK ltd as anyone can create such a company in 24 hours for about 10 pounds; hence the trustworthiness of such a company is ~zero.
It all depends on how what kinds of turnover you're expecting.
Setting up a proper corporate entity will require some up-front capital, however it'll be much more solid than any internet payment processor + EMI can offer.
The reason why a proper corporation will require capital is:
#1 Mandatory corporate capital / purchasing cost of company
#2 Nominated director (as most countries require the director to be a resident in said country)

Once you set up a proper company, most banks will gladly offer you a merchant solution.
The card processing fees will be lower than ~3% that stripe and other offer and you won't be at the constant risk of getting shut down.

If you don't have capital for such a venture then you'll unfortunately be stuck with large internet payment processors who manage everything through algorithmic procedure, and hence, you can be shut down at any point.
If that is the case, then I'd recommend you to apply for a Revolut merchant account; they settle on a daily basis with a minimal reserve and are fairly reasonable to work with assuming you don't get chargebacked.
 
Brian Alexander said:
You're never going to achieve much with simply a UK ltd as anyone can create such a company in 24 hours for about 10 pounds; hence the trustworthiness of such a company is ~zero.
It all depends on how what kinds of turnover you're expecting.
Setting up a proper corporate entity will require some up-front capital, however it'll be much more solid than any internet payment processor + EMI can offer.
The reason why a proper corporation will require capital is:
#1 Mandatory corporate capital / purchasing cost of company
#2 Nominated director (as most countries require the director to be a resident in said country)

Once you set up a proper company, most banks will gladly offer you a merchant solution.
The card processing fees will be lower than ~3% that stripe and other offer and you won't be at the constant risk of getting shut down.

If you don't have capital for such a venture then you'll unfortunately be stuck with large internet payment processors who manage everything through algorithmic procedure, and hence, you can be shut down at any point.
If that is the case, then I'd recommend you to apply for a Revolut merchant account; they settle on a daily basis with a minimal reserve and are fairly reasonable to work with assuming you don't get chargebacked.
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i agree,

in this case what would be a proper way about going through a Company Registration? Since there is no way i can setup a payment processor in my country

I want to have a solution where i know i can use that provider for years without risk of randomly getting shut down like with Stripe/Shopify Payments

And what are your thoughts on going for a Wyoming LLC since that has 0% Tax Rates


I'd very much appreciate it if you could let me know how you'd go about this
 
MagmaDeSade said:
i agree,

in this case what would be a proper way about going through a Company Registration? Since there is no way i can setup a payment processor in my country

I want to have a solution where i know i can use that provider for years without risk of randomly getting shut down like with Stripe/Shopify Payments

And what are your thoughts on going for a Wyoming LLC since that has 0% Tax Rates


I'd very much appreciate it if you could let me know how you'd go about this
Click to expand...
I don't have any experience in Wyoming LLC.
Also, I'd imagine a US LLC in a ~0% tax state with power of attorney setup would suffer from the same reputation issues as a UK LTD since they're so easy and cheap to create.

What's your budget for the initial company formation?

A swiss AG is definitely the most solid but certainly has significant costs attached to it such as company formation with required capital, trip(s) to the switzerland and recurring costs to a nominated director.
Other than being reputable, in the sense that any bank would provide you with a merchant account, it offers a certain company and bank level anonymity that only other less reputable (cyprus, dubai, various islands etc.) and hence worse locations offer as well.

Also, don't believe the prices these hands-off online company formation agents give you. They're going to leave you with a practically useless product or gonna omit expenses that'll rake up the bill in the long run anyways.
Nominated directors (and PoA's to a lesser extend) are all about trust; hence setting up a company without even having met them in person is insanity IMO.
 
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Wyoming LLC will solve this problem I am doing it with Wyoming LLC
 
dividebyzero said:
Wyoming LLC will solve this problem I am doing it with Wyoming LLC
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Hey man, Could i ask

1. Where you registered the Wyoming LLC?
2. How much did it cost you?
3. Have you been using that Wyoming LLC for Shopify or something else?
4. Have you actually been getting 0% tax rates?

Would greatly appreciate some answers to these questions whenever you've got the time
 
Try with Mollie.
However depending on the country in the EU you will have to have a minimum sales volume.
 
Why did you tell stripe or Shopify payments you were dropshipping? You could've always said it's your own products so they see it as far less risk.

But use a US LLC with a residental/4g proxy and shouldn't be an issue
 
Use firstbase.io and get a Wyoming LLC. Then apply for Stripe. But make sure you have a decent-looking website with at least 50-100 products. Anything less than that will make your site look suspicious and will always face a risk of shut-down.
 
Creating a company will not help about that. The fact is that payment processors like Stripe and PayPal hate dropshippers and when they find out that you use this kind of business, they will probably reject you for "high-risk business model".

Well, creating a company can help delay this, maybe if your supplier is really fast the chances will be mitigated as well.

However, the best option is to look for high-risk payment processors or other options. Give FasterPay / Paymentwall, OceanPayments a try...not exactly high risk, but more open.
 
wassup3 said:
Use firstbase.io and get a Wyoming LLC. Then apply for Stripe. But make sure you have a decent-looking website with at least 50-100 products. Anything less than that will make your site look suspicious and will always face a risk of shut-down.
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50-100 products? its a Dropshipping store, would i literally just put a crap ton of random products?

Do i send the fake website to Stripe and then just use Stripe in another store? (Would get Supplier/Order Checked so probably wouldnt work)

Could you elaborate more on the 50-100 products thing?
 
Monzani said:
Creating a company will not help about that. The fact is that payment processors like Stripe and PayPal hate dropshippers and when they find out that you use this kind of business, they will probably reject you for "high-risk business model".

Well, creating a company can help delay this, maybe if your supplier is really fast the chances will be mitigated as well.

However, the best option is to look for high-risk payment processors or other options. Give FasterPay / Paymentwall, OceanPayments a try...not exactly high risk, but more open.
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Are you sure FasterPay / Paymentwall, OceanPayments are an option? I believe ive applied to both FasterPay and Paymentwall and they rejected my Business Model of Dropshipping immediately
 
MagmaDeSade said:
50-100 products? its a Dropshipping store, would i literally just put a crap ton of random products?

Do i send the fake website to Stripe and then just use Stripe in another store? (Would get Supplier/Order Checked so probably wouldnt work)

Could you elaborate more on the 50-100 products thing?
Click to expand...

It would be best if you changed your mindset about Dropshipping before even applying for a payment processor. Gone are those days when you could just start a website with a few random winning products, run FB ads, and then make sales. This is exactly why even payment processors got wary of the business model. Because it WAS a low-risk model and people who entered early in the game made tons of money. Unfortunately, it's not the same case anymore. And 99% of the newbs who are starting now have less than 25 products and have no clue about how an e-commerce website should look like. I don't have any experience in building a general product store, but my guess is that there are very few people who are making profits with general random products (maybe the ones who have mastered the art of FB/Social ads and have shitloads of capital).

I would suggest you pick a solid niche, something which you are passionate about and then slowly build your game. Import at least 100 products from Ali/Dsers Shopify app, work on the product descriptions, read about CRO, make your website as authentic as possible and then apply for a payment gateway. You don't need any high-risk payment processor. Stripe & PayPal would be just fine. Dropshipping is not illegal. Even some of the biggest companies do dropship. Most of the time, it's the website which is the problem for rejection, not the business model.
 
wassup3 said:
It would be best if you changed your mindset about Dropshipping before even applying for a payment processor. Gone are those days when you could just start a website with a few random winning products, run FB ads, and then make sales. This is exactly why even payment processors got wary of the business model. Because it WAS a low-risk model and people who entered early in the game made tons of money. Unfortunately, it's not the same case anymore. And 99% of the newbs who are starting now have less than 25 products and have no clue about how an e-commerce website should look like. I don't have any experience in building a general product store, but my guess is that there are very few people who are making profits with general random products (maybe the ones who have mastered the art of FB/Social ads and have shitloads of capital).

I would suggest you pick a solid niche, something which you are passionate about and then slowly build your game. Import at least 100 products from Ali/Dsers Shopify app, work on the product descriptions, read about CRO, make your website as authentic as possible and then apply for a payment gateway. You don't need any high-risk payment processor. Stripe & PayPal would be just fine. Dropshipping is not illegal. Even some of the biggest companies do dropship. Most of the time, it's the website which is the problem for rejection, not the business model.u
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Quite an interesting take, But i wouldnt actually like to sell on a General Store with 100 Products,

Will that 100 product store just be a good decoy store to show the Payment Processor?

Im considering just going with something like Shopify Payments using an LLC instead as they probably wouldnt decline me if i made a mediocre site with their own Site Builder
 
MagmaDeSade said:
Quite an interesting take, But i wouldnt actually like to sell on a General Store with 100 Products,

Will that 100 product store just be a good decoy store to show the Payment Processor?

Im considering just going with something like Shopify Payments using an LLC instead as they probably wouldnt decline me if i made a mediocre site with their own Site Builder
Click to expand...
Have you found a solution for your business? I have the same problem so I'm interested.
 
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